RIO DE JANEIRO,
Brazil, March 24, 2014 /CNW/ -
HRT Participações em Petróleo S.A. (the "Company" or "HRT")
(BM&FBOVESPA: HRTP3, TSX-V: HRP) hereby informs that its
subsidiaries HRT O&G Exploração e Produção de Petróleo Ltda.
("HRT O&G") and HRT Netherlands B.V. ("HRT BV"), and Rosneft
Oil Company's subsidiaries, Rosneft Brasil E&P Ltda. ("Rosneft
Brasil") and Rosneft Latin America S.A.R.L ("Rosneft LatAm"), in
continuation to the preliminary agreement disclosed to the market
on November 22nd, 2013,
have signed, on March 22nd
2014, the final agreements, regarding HRT O&G's sale of 6%
working interest, which will hold 49%, and the transfer of
operatorship in their Joint Venture in the Solimões Sedimentary
Basin to Rosneft Brasil, holding 51%. As previously released, this
transaction also encompasses the sale of four heli-transportable
drilling rigs by HRT BV to Rosneft LatAm.
The relevant transaction amounts to USD 96 million. From that amount, USD 54 million were received during the second
half of 2013, other USD 18 million
will be received by the end of the first quarter of 2014, and the
remaining amount of USD 24 million
will be received when transaction is completed upon ANP approval in
mid-2014. The total amount refers to the sale of 6% working
interest, the transfer of operatorship in their Joint Venture in
the Solimões Sedimentary Basin to Rosneft, the sale of four
heli-transportable drilling rigs and the settlement of the
outstanding cash calls owed by Rosneft until October 2013. Rosneft will also provide HRT a
loan facility up to USD 40 million to
finance HRT investments in Solimões for a period of 12 months from
the closing date. Rosneft Brasil is fully in compliance with its
Joint Operating Agreement (JOA) obligations.
The transition process between the teams of both
companies has already begun. HRT and Rosneft Brasil have been
working on the transition of their teams, including the transfer of
HRT personnel to Rosneft Brasil and operations, so that the final
transfer occurs in a continuous and integrated manner, and
observing safety, performance and quality standards.
The signing of the final agreements replaces the
preliminary agreement as of November
22nd, 2013. Completion of the purchase and sale
agreement between HRT O&G and Rosneft Brasil of the 6% working
interest (Solimões Blocks) will be contingent upon the fulfilment
of certain contractual conditions, including the final approval by
the National Agency of Petroleum, Natural Gas and Biofuels
(ANP).
"Signing of these agreements means excellent
news for both companies. Restatement of this partnership brings HRT
the confirmation of our partner's confidence, and also ours, in the
potential for development of the Solimões Basin. We own a large
knowledge of Solimões and we believe in the potential for
exploration and future development", highlighted Milton Franke, CEO of HRT.
Sedar Profile # 00031536
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Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
About HRT
HRT Participações holds one of the largest independent oil and gas
exploration and production companies in Brazil. The HRT Group comprises six main
subsidiaries: IPEX (Integrated Petroleum Expertise Company Serviços
em Petróleo Ltda.), HRT O&G Exploração e Produção de Petróleo
Ltda., HRT Netherlands B.V., HRT África Petróleo S.A., HRT América
Inc. and HRT Canada Inc.. The Company retains a 55% interest in 19
exploratory blocks in the Solimões Basin and 60% of interest in The
Polvo Field, located in the southern portion of the Campos Basin.
HRT also operates ten exploratory blocks off the Namibian coast:
eight blocks in the Orange Sub-basin and two blocks in the Walvis
Sub-basin. HRT's team includes PHDs and masters in geochemistry,
geophysics, biology and engineering, most of them former employees
of Petrobras and ANP (Brazil
petroleum agency). HRT is committed to minimizing any possible
environmental impacts in the sites where it acts. Our commitment to
the local communities is towards health conditions, safety and
quality of life. For more information, please visit the Company's
website: www.hrt.com.br/ir
Disclaimer
This news release contains forward-looking statements. All
statements other than statements of historical fact contained in
this news release are forward-looking statements, including,
without limitation, statements regarding our drilling and seismic
plans, operating costs, acquisitions of equipment, expectations of
finding oil, the quality of oil we expect to produce and our other
plans and objectives. Readers can identify many of these statements
by looking for words such as "expects", "believe", "hope" and
"will" and similar words or the negative thereof. Although
management believes that the expectations represented in such
forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. By their
nature, forward-looking statements require us to make assumptions
and, accordingly, forward-looking statements are subject to
inherent risks and uncertainties. We caution readers of this news
release not to place undue reliance on our forward-looking
statements because a number of factors may cause actual future
circumstances, results, conditions, actions or events to differ
materially from the plans, expectations, estimates or intentions
expressed in the forward-looking statements and the assumptions
underlying the forward-looking statements.
The following risk factors could affect our
operations: the contingent resource and prospective resource
evaluation reports involving a significant degree of uncertainty
and being based on projections that may not prove to be accurate;
inherent risks to the exploration and production of oil and natural
gas; limited operating history as an oil and natural gas
exploration and production company; drilling and other operational
hazards; breakdown or failure of equipment or processes; contractor
or operator errors; non-performance by third party contractors;
labour disputes, disruptions or declines in productivity; increases
in materials or labour costs; inability to attract sufficient
labour; requirements for significant capital investment and
maintenance expenses which HRT may not be able to finance; cost
overruns and delays; exposure to fluctuations in currency and
commodity prices; political and economic conditions in Namibia and Brazil; complex laws that can affect the cost,
manner or feasibility of doing business; environmental, safety and
health regulation which may become stricter in the future and lead
to an increase in liabilities and capital expenditures, including
indemnity and penalties for environmental damage; early
termination, non-renewal and other similar provisions in concession
contracts; and competition. We caution that this list of factors is
not exhaustive and that, when relying on forward-looking statements
to make decisions, investors and others should also carefully
consider other uncertainties and potential events. The
forward-looking statements herein are made based on the assumption
that our plans and operations will not be affected by such risks,
but that, if our plans and operations are affected by such risks,
the forward-looking statements may become inaccurate.
The forward-looking statements contained herein
are expressly qualified in their entirety by this cautionary
statement. The forward-looking statements included in this news
release are made as of the date of this news release. Except as
required by applicable securities laws, we do not undertake to
update such forward-looking statements.
SOURCE HRT Participações em Petróleo S.A.